After the World Expo, The real estate industry will develop faster. According to the provisions of the international exhibitions Bureau and the practice of the past EXPOs, all the foreign national pavilions are temporary buildings and most of them will be demolished after the event.
In the place, there will be millions of square metres of new constructions. It will be a great business opportunities for the Shanghai Property developers. In fact, the development in the post-Expo period has been already under planning. According to the “ Pudong New Area Strategic Plan for the Post-Expo Development of Expo region (in the period 2010-2020) ”, an Expo New Town will be built in Expo region, aiming to become the fifth Shanghai sub-central-district. Shanghai Property developers will be fighting to acquire the land in the Expo region. And the price of the land will also increase.
A Shanghai Property consulting company has published a Sanghai real estate market investment analysis and forecast for the period of 2009-2012.
According to the professional analysis in the real estate market, more and mre migrants are willing to live in Shanghai for a long time as the city’s economy has been growing rapidly and the infrastructure and education facilities have been greatly improved in the recent years.
Thosepeople want move out of their rented home and buy properties in Shanghai instead. Another reason is that in Shanghai Rentmarket, with issuance of the police of 70/90 sqm and, consequently, with the increased supply of small and medium-sized properties, tenants have more and more choices.
Now there are a large number of small and medium-sized properties coming to the Shanghai Rentmarket, this situation actually help keep the rental from further increasing.
According to the statistics by a local real estate agency, 2-bedroom type properties recently approximately 45% of the total lease market, in some areas they makes more 50%. In average, 3 out of 4 prospective tenants look for 2-bedroom type.
Therefore it is easiest to lease out this type of properties and hence the shortage of supply. In the opnion of a local real estate agent, there are multiple reasons for such phenomenon. First , 2-bedroom type properties are not too small, not too big for school graduates, white collar workers and a small family of three members. The second reason is that Shanghai Rental of this type of property is reasonable, cheaper than 3-bedroom types, which make them more affordable to ordinary people.
And if two or more tenants rent a property together, they can share the rental. The general Shanghai Rental on the current market is as follows, for 2-bedroom month, the rental varies between RMB2,500 to RMB2,800. For 1-bedroom types, the rental is between RMB1800 and RMB 2,100. For 3-bedrooms, the rental is between RMB3,200 to RMB3,600.